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Different returns to different degrees? Evidence from the British Cohort Study 1970

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Author Info
Bratti, Massimiliano (Università degli Studi di Milano)
Naylor, Robin (University of Warwick)
Smith, Jeremy (University of Warwick)

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Abstract

As in many other countries, government policy in the UK has the objective of raising the participation rate of young people in higher education, while also increasing the share of the costs of higher education borne by students themselves. A rationale for the latter element comes from evidence of a high private return to university undergraduate degrees. However, much of this evidence pre-dates the rapid expansion in the graduate population. In the current paper, we use evidence from a cohort of people born in 1970 to estimate hourly wage returns to a university degree. Among other results, we ?nd (i) that compared to an earlier 1958 birth cohort the average returns to a ?rst degree for men changed very little, while the return for women declined substantially and (ii) substantial evidence of differences in returns to a first degree according to subject area of study and class of degree awarded

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File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/workingpapers/publications/2007/twerp_783.pdf
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Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 783.

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Length: 30 pages
Date of creation: 2007
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Handle: RePEc:wrk:warwec:783

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Keywords: degree ; return ; subject ; UK ; university;

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Find related papers by JEL classification:
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
J4 - Labor and Demographic Economics - - Particular Labor Markets
I2 - Health, Education, and Welfare - - Education

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    Other versions:
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  6. Pedro Telhado Pereira & Pedro Silva Martins, 2004. "Returns to education and wage equations," Applied Economics, Taylor and Francis Journals, vol. 36(6), pages 525-531, April. [Downloadable!] (restricted)
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  7. Battu, H. & Belfield, C. R. & Sloane, P. J., . "Overeducation Among Graduates: A Cohort View," Working Papers 98-03, Department of Economics, University of Aberdeen. [Downloadable!]
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